Avoiding Taxes is easy?
High Net Worth Individuals still pay a significant amount of Federal and State taxes, However, most High Net Worth Individuals have major investments and most gains are recognized at the Long Term Capital Gains rate which is normally 20% vs Ordinary Income rates at 38%. This does not include state taxes. Every state is different so I can not estimate an average tax rate as some states have no taxes and others as high as 10% or more like New York. In addition, if real estate or Oil and Gas investments are made there are significant tax advantages that are available.
Some wealthth alwasy trick the tax system because they know how it works. Also, wealth creates moree wealth anyways.
3 months ago
With digitization, there is a lot of transparency in all the dealings and authorities can mine details at few clicks of button. So, the escape routes for tax avoidance are getting plugged and it will become extremely difficult to conceal income and avoid taxes.
Having said that, the path of saving taxes is always open to all. People need to be aware of Personal Finance details and rather than leaving everything to their consultants and chartered accountants, should also take deep interest in knowing the basics of money management and the various tax saving options available at one's disposal. Being fully aware and then actually managing your income and tax returns so as to exploit these tax saving instruments is critical to save tax. An advanced level understanding of if the returns are tax free or taxable also helps in choosing the right instruments for investment.
Apart from saving tax, the practice also helps in investing for the future. So its easy, provided one is "Money-Minded" too.